By Daniel Hunter

The Confederation of British Industry (CBI) has said that the government should boost the UK economy by committing £1.5 billion to backing major construction projects.

The CBI argues the government has the money available because ministerial departments under spent by almost £8 billion last year due to cost cutting.

It wants such 'shovel ready' schemes to be driven forward to help create jobs and increase investment.

The Treasury said it was committed to supporting private sector growth.

CBI director general John Cridland said that this government action should run alongside the continuing general austerity measures.

"We need an industrial Olympics, with big schemes which can make a real difference," he said.

Mr Cridland highlighted the need for improvements in the UK's rail and road networks.

The CBI says the government should back the construction sector, by introducing measures including investment tax breaks, and business rate reductions, up to a value of £1.5bn in the first instance.

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